Consultation Paper no. 8/2023

IVASS has released a draft letter for public consultation regarding Product Oversight and Governance (POG). This letter outlines IVASS’s supervisory expectations regarding insurance companies‘ obligations in governing and controlling insurance products.
This initiative stems from IVASS’s supervisory activities regarding the implementation of Product Oversight and Governance (POG) regulations by insurance companies. Its primary aim is to provide non-binding guidance to industry players on how IVASS expects companies to adhere to the current regulatory framework for POG.
In line with the principle of proportionality, POG obligations are tailored to each individual insurance company. Companies are expected to consider their own size and organizational complexity, the risks associated with their specific business activities, the complexity of each insurance product, and the relevant market.
IVASS provides detailed expectations in 15 key areas, including the role of the administrative body in the POG approval process, POG policies, core functions, conduct risk, target markets for IBIPs, IBIP complexity, Multi-option products (MOPs), product testing, profit testing from the customer perspective, monitoring and review of IBIPs, and periodic reviews of IBIPs.
These expectations, while non-binding, are expected to have a significant impact on the market. IVASS’s expectations on POG are presented in specific numbered sections, offering detailed insights into various aspects, and, when applicable, supported by references to regulations or findings from supervisory analyses that justify IVASS’s choices. The letter also outlines the methodologies used by IVASS in supervisory analyses and verifications of significant aspects.
Stakeholders are invited to provide feedback on these expectations and numbered indications to IVASS by 5 November 2023 (within 30 days) via the provided email address letteraalmercatoPOG@ivass.it, using the attached table in Word format for submission.